4 Things You Should Know about Low Inventory

What does Low Inventory Mean to Me?

Every social media post, newspaper article, real estate website, and blog post related to real estate is consumed with the reality of low housing inventory. What does that really mean?

1. The Real Estate Market Is Red Hot🔥 Right Now!

Remember high school economics? Those supply/demand graphs? When supply is low and demand is high, prices will rise.  In Northern Kentucky, the average homeowner gained $37,086 in equity in the last 12 months.

2. What Will Happen to the Market?

Are interest rates on the rise? Yes.

Will that rise increase or slow down the market (or crash it?) No.

There are 72 million millennials, ages 26-41 currently – the largest population group, representing approximately 43% of all homebuyers so far in 2022 -- capturing a mix of first time homebuyers, second home buyers and vacation home buyers.

U.S. Census found that 12.3 million American households were formed from January 2012 to June 2021, but just 7 million new single-family homes were built during that time. With a shortage of 5 million homes, building production hampered by pandemic era rising costs, supply chain challenges and labor shortages and increasing demand from the millennial generation, we are years away from a balanced buyer/seller market.

In summary, while interest rates might slow down the pace, the result is likely to be single digit price appreciation vs the double digit gains we’ve experienced over the past 2 years. A strong sellers market is here to stay for awhile!

3. I'm Selling...

If you are selling, your home will likely sell fast. Prepped, staged, priced correctly and professionally marketed, the final sales price will put a smile on your face.  You’ll need to plan ahead for your next home, your strategy matters here. Timing, loan options, short term housing, building, what are your concerns? There are so many options available. 

The best agents offer value to their clients by providing creative solutions.

Pro Tip: You can over price your house in this market (resist the temptation to “just try it”)

4. I'm Buying...

If you are buying, be prepared to pay the asking price or higher.  The fewer contingencies or concessions you include in the contract, the stronger your offer.  Price is always important, but not always the most important.  

A very simple example, if the seller is not advertising the refrigerator to be included in the sale, don’t offer $2000 over asking price and include the refrigerator.  If all other terms are equal and the competing offer is for $2000 over asking price and NOT including the refrigerator, you’ve likely just lost the competition. 

The best agents offer value to their clients by providing creative solutions.

Pro Tip: This best selling refrigerator is available NEW at Lowe’s in Florence-for less than $2000 (click HERE to see it)

Bonus: Find the Real Estate Assistance You Need!

Low inventory means you’ll need a plan to achieve your home sale or purchase dreams (& maybe a double dose of patience).  Where should you start? 📲Call Janell